Filing Chapter 13 To Stop Foreclosure

Many homeowners resent filing for bankruptcy because of its effect on their credit score; however, it all comes down to how you go about it and which chapter you filed. Filing for chapter 13 bankruptcy to stop foreclosure is not only the best option explored by homeowners, but it offers a lot of benefits that other chapters do not.

Facing foreclosure is a different experience for homeowners, as it creates both physical and emotional stress for individuals. One of the easy and quick ways to stop foreclosure is by filing for bankruptcy. It’s not as stressful as other options, and it can be done on the internet. However, you don’t want to go through this process all by yourself, hire a lawyer to help you file for bankruptcy for the best result. Many homeowners go through this process wrongly to file for bankruptcy themselves, which leads to unnecessary liabilities, damage to their credit score, and, in most cases, loss of their home.

As you go through foreclosure, ask your lawyer to review your financial situation and help you determine which chapter you should file. Chapter 13 might not be right for everyone, but it is popular because of its benefits. So what are the benefits provided by chapter 13 bankruptcy that makes homeowners prefer it?

You won’t have to sell your home.

With chapter 13 bankruptcy, you get to keep your home and also stop foreclosure. Some form of bankruptcy will require you to sell your properties, including your home, to pay off your debts.

You can propose a repayment plan.

Many chapters of bankruptcy help you stop the foreclosure. Still, you won’t be allowed a repayment plan; however, with chapter 13 bankruptcy, you can propose a repayment plan to your lender.

You are given a longer relief time.

For example, Chapter 7 only gives you a temporary relief period, usually three months. With chapter 13, you have from 3 to 5 years to pay off your debt and stabilize your financial situation.